Magnificent News: Stocks soar Friday, but post weekly losses | Citigroup shares leap

Friday, July 15, 2022

Stocks soar Friday, but post weekly losses | Citigroup shares leap | Fed expectations gone wild

FRI, JUL 15, 2022

EVENING BRIEF

AS OF FRI, JUL 15, 2022 • 05:04 ET

DJIA		31288.26
		+2.15%	+658.09

S&P 500		3863.16
		+1.92%	+72.78

NASDAQ		11452.42
		+1.79%	+201.24

Most Active

DOW
NAME	LAST	CHG	%CHG
AAPL	150.17	+1.70	+1.15%
INTC	38.62	+0.91	+2.41%
MSFT	256.72	+2.64	+1.04%

S&P 500
NAME	LAST	CHG	%CHG
C	49.98	+5.84	+13.23%
AMZN	113.55	+2.92	+2.64%
BAC	32.25	+2.12	+7.04%

NASDAQ
NAME	LAST	CHG	%CHG
AMZN	113.55	+2.92	+2.64%
AAPL	150.17	+1.70	+1.15%
AMD	81.11	+2.51	+3.19%

EDITOR'S NOTE

Stocks soared Friday on the back of a fresh round of bank earnings and economic data. But the major indices still finished the week in negative territory.

Citigroup surged more than 13% after beating expectations for the recent quarter, while Wells Fargo jumped nearly 6.2% despite mixed results. Financials rallied 3.5%, closing out the day as the S&P 500's best-performing sector.

Traders continued to assess the likelihood of a 100 basis point rate hike at the upcoming Fed meeting. Retail sales and preliminary consumer sentiment data suggested that perhaps the economy is in a better state than Wall Street had anticipated.

Despite Friday's rally, this week was only the beginning of what may be a rough rout for earnings, said Charles Schwab's Randy Frederick. Only a small portion of companies in the S&P 500 have reported earnings thus far. Until more than a quarter do so, it's hard to truly predict what the results will bring.

While Frederick suspects some companies may post decent results for the second quarter, guidance is key this earnings season. Optimism may be running dry for the third quarter, particularly since markets are on the verge of another aggressive rate hike.

"Companies, whether they're manufacturers or services, have had the ability to have a lot of pricing power and the ability to raise prices and pass a lot of those costs on to consumers," he said. "I suspect that we're getting close to the end of that, which means margins are going to get compressed."

The true test may come from big technology earnings. Tesla and Netflix, along with Goldman Sachs and Bank of America, are on deck next week.